Australia: Transaction Reports and Analysis Centre ordered Binance to appoint external auditor over concerns of non-compliance with anti-money laundering and counter-terrorism financing regulations

On 22 August 2025, the Australian Transaction Reports and Analysis Centre (AUSTRAC) directed Investbybit, which operates Binance in Australia and is a registered digital currency exchange provider, to appoint an external auditor within 28 days after identifying serious concerns with its anti-money laundering and counter-terrorism financing (AML/CTF) controls. AUSTRAC’s National Risk Assessment 2024 highlighted growing vulnerabilities of digital currencies to criminal abuse. The investigation followed regulatory engagement across the priority sector and noted concerns that Binance’s independent review was limited in light of its size, scope, business offerings and risks. AUSTRAC also noted high staff turnover, insufficient local resourcing and a lack of senior management oversight, which raised doubts about the adequacy of the exchange’s AML/CTF governance. The AUSTRAC stressed that global operators must adapt systems and processes to Australian requirements, apply robust customer identification and due diligence, implement effective transaction monitoring, ensure independent reviews are meaningful, and maintain capacity and risk controls proportionate to their scale and transaction volumes. AUSTRAC reiterated that all digital currency operators must comply with Australian law and reporting obligations to reduce exposure to scams, cybercrime and terrorism financing.